The inflation rate in Ireland, as measured by the Central Statistics Office (CSO), edged upwards to hit a five month high in May at 2.4%. This represents a 0.2% rise on the previous month when the rate stood at 2.2%.

The major contributors to the rise were increased transportation, healthcare, and education costs. In April the EU25 average rate of inflation was 2.1%, with Latvia having the highest rate at 7.1% and Sweden the lowest at 0.4%.

Despite the increase in the rate, Irish inflation remains very low – having hit 7% during 2000 and remaining around the 5% until the beginning of 2003. Another major factor easing any worries about the increase is Ireland’s very strong GDP growth – expected to be around 5.5% this year

On an annual basis the cost of footwear and clothing have fallen by 2.7% whilst energy costs have soared by 10.4%. The cost of food, furniture, and communications also fell over the last 12 months.

The Consumer Price Index is made up of over 55,000 prices consisting of 613 headings which cover over 1,000 different items.